Key Insights:
- Argentina has shut down the special investigation unit assigned to probe the Libra cryptocurrency scandal.
- The Ministry of Justice stated that the investigation unit completed its objective before the government officially disbanded it.
- President Javier Milei and Justice Minister Mariano Cúneo Libarona signed the order to dissolve the investigation task force.
Argentina’s government has officially shut down the Unidad de Tareas de Investigación (UTI), the special unit probing the Libra cryptocurrency scandal. The Libra token controversy involved President Javier Milei and his sister Karina, triggering public backlash and judicial scrutiny. The Ministry of Justice stated that the UTI completed its task before its closure, but questions remain as probes deepen.
Libra Task Force Closed as Probes Grow
The UTI was created to investigate the rapid rise and collapse of the Libra crypto token, which is tied to political promotion. Argentina’s Ministry of Justice said President Milei and Minister Mariano Cúneo Libarona signed the disbandment order. After the unit was dissolved, officials said the task force gave its findings to the public prosecutor.
Nevertheless, the case remains open since new legal actions keep being opened. Just last month, a federal judge in the case ordered Argentina’s central bank to unseal bank accounts tied to Javier and Karina Milei. However, the timing of the UTI shutdown has troubled many, and audits and freezes on financial assets have been initiated.
Karina Milei serves as the General Secretariat of the Presidency and has remained a key figure throughout the Libra controversy. Authorities also froze assets belonging to three Libra co-founders, who are believed to have facilitated the scheme.
Libra Token’s Launch and Sudden Collapse
Libra launched in February under Kelsier Ventures, a Delaware-based company, and quickly gained massive online traction. Hours after the launch, President Milei posted on X touting the token as a financial tool for small businesses. His post included the Libra contract address and the website link, which caused a market surge.
Milei’s promotion sent the token’s market cap soaring to $4.5 billion within hours, driven by speculation in the token, which picked up some momentum before Milei flouted his own BANHAU campaign rules. However, the rapid growth was followed by a steep decline, wiping out 80% of Libra’s market value. After the crash, Milei deleted his tweet and said he did not have any prior knowledge of or intent to market the token for profit as he posted it.
He described himself as a technology supporter but denied involvement in planning Libra’s launch. Meanwhile, Hayden Davis, linked to Libra, claimed he paid Karina Milei to influence her brother’s promotion of the token. He also stated he controlled wallets worth over $100 million gained through the Libra project.
Retail Losses and Insider Profits Raise Alarm
The Libra collapse led to financial losses of $251 million, impacting many retail participants. According to research, 86% of project participants lost money on the project. Token holders in a small group of wallets are reportedly making profits by withdrawing money when the token had its peak.
Reports identified eight wallets that pulled $99 million from the Libra liquidity pool before the crash. These wallets received tokens directly from Libra’s creators, indicating early access and coordinated activity. However, investigators have not publicly confirmed the identity of these wallets.
And despite official denials, Karina and Javier Milei continue to be public scrutiny targets of ongoing money probes. Argentine media called the scandal the “CryptoGate,” and it pressured the administration to deal with the troubles. Authorities are still working to trace the flow of funds related to Libra and examine potential misconduct.
